Screening

It’s not about luck – it is about what you can do with what you have.  If you can’t find housing because of rock-bottom credit scores, a criminal record, or evictions read on…  Here are a couple of tips that could improve your chances for a positive outcome.

·         Get copies of your credit report from the three credit-reporting agencies, review them and respond to any negative or inaccurate information that appears. 

·         Call for an appointment to see the property.  Be polite.  Don’t talk about bad luck or past landlords or how you can’t get a break.  Be polite and positive.  Have someone watch your children while you make this call – this will allow you to focus on what you need to do to get an appointment and make a positive impression.  Be polite and articulate.

·         Prepare for your appointment.  Come prepared with the information you need to complete the rental application.   Write a list of questions you might have for the landlord and think about what you want to say.  You want to show the landlord that you can be a responsible, long-term tenant.

·         Arrive early for the appointment – at least 15 minutes.  Act like you’re going to a job interview – you want to be clean, well-groomed and appropriately dressed.  If your children are accompanying you to the appointment, coach them on their manners.

·         Ask to see the property (and common areas if this is a multi-family unit); ask about parking restrictions, storage areas, and laundry facilities.  Do not make any negative comments about the property.  If the property is well-maintained, compliment the landlord.

·         If you are interested in renting the property, share your history with the landlord.  Take responsibility for whatever mistakes you might have made and be honest.  Landlords don’t like surprises.  Ask what the landlord’s screening criteria is and what the odds are of you meeting their criteria.   If the landlord is receptive, submit your application.   However, if the landlord isn’t encouraging or willing to negotiate with you, it’s a good indication that your application will probably not be accepted.

If you’re not interested in the property, feel that the landlord was rude, or don’t feel that environment is right for your family, look elsewhere.  Don’t be discouraged.  There are people available to help you with your housing needs.

Landlords Criteria

I’ve given a lot of thought to ‘rental criteria’ lately and began perusing copies of rental applications.  Jeeze, there are a bunch of ‘em out there.  Some are good, some are bad, and some are flat-out illegal, however considering the litigious nature of our culture landlords/property managers need to be cautious, but NOT discriminatory.  A fine and wavery line…and I’m not even sure that I would meet these requirements!

The following is a compilation (maybe country-wide hodgepodge is a better term) of criteria I’ve unearthed for accepting (or rejecting) rental applications.  Remember criteria differ from state to state, so always check with your local landlord/property manager/realtor association for confirmation. 

In no particular order:

Lack of steady employment – minimum of ____ (fill in the blank but no less than 12 months, and I saw up to three years)	Application is incomplete	Insufficient credit resources, Poor credit score (less than 500), no credit file, insufficient credit file
False or misleading information provided on application	Poor references (employer, past landlord )	Previous eviction; previous evictions within past ten years
Insufficient income – less than 30% of monthly income to cover rent	Unable to verify income sources, employment, or residence	Criminal record, felony conviction, misdemeanor charges including violence, theft, fraud, weapons
Foreclosure, suit, garnishment, attachment of wages, repossession, bankruptcy within past five years	Section 8	Smoking
Temporary residence, not enough time spent in current residence, history of moving from one residence to another within a couple of months	Pets	Insufficient funds to cover security deposit, applications/processing fees, first months’ rent
No late fees within last 90 days	Family exceeds occupancy limits	Verifiable income must equal 3x rent
Unable to provide legitimate photo identification	No co-signers	Unable to provide secondary credit references like utilities

Costs of Moving

You and your voucher. Most voucher programs allow you to relocate provided you are in good standing.  There are no restrictions on where you can live, whether it’s a new property, a new town, or a new state, however you must apply with your program/caseworker.  You should keep in mind that you will have to assume the financial responsibilities associated with the relocation.  Some of your responsibilities will include:

Application Fee(s) – any application, deposit and/or move-in fees

Security Deposit – security deposit at your new property

Utility Deposits/Start-Up Costs – switching your service and connecting the phone  

Movers – any moving expenses you may incur, which includes truck rental and packing material  

Gas, food and lodging – gas, food and lodging until your property is ready for move-in

Cleaning products and time – You need to make sure that you have enough time and enough of the right cleaning products to prepare your current property for the final walkthrough with the landlord or property manager.  Patch any holes, replace any broken glass or damaged screens.  Scrub and vacuum.  Your security deposit depends upon the condition of the property at walkthrough and you’ll need the money for your new residence.

What’s the difference between a service animal, companion animal, therapy animal, and emotional support animal?

Service animals are legally defined and recognized (Americans with Disabilities Act, 1990) by Federal laws which protect the rights of individuals with disabilities to be accompanied by their service animals in public places. A service animal is not a “pet“– it is any animal that has been trained to assist a person with a disability. A service animal is not subject to a ‘No Pets’ policy, a pet deposit, or additional cleaning fees and service animals are the ONLY animals that can accompany their handler/owner anywhere without restriction.

Although most people are more familiar with the term service dog rather than service animal; this specialized training is not limited to dogs, but includes birds, Capuchin monkeys, pot-bellied pigs, and even miniature horses!

Federal laws do not extend the same recognition to the following:

1. Therapy animals work with a health-care professional as part of a treatment plan. Dogs that do visitation are also commonly called “therapy dogs”.

2. Companion animal is simply another term for ‘pet’.

3. Emotional Support animals provide companionship, relief from loneliness & depression, and similar support can be allowed in housing (even “No Pet” housing) without the requirement of a pet deposit, however they don’t have access to public places.

As a landlord you have the right/obligation to ask for confirmation from the applicant’s healthcare professional or physician; however you do not have the right to inquire about the specific disability (ies). (Always retain tenant-related information in their file.)

GO8 Tip: When you meet a person with a service dog, please remember that the dog is working. Don’t do anything to interrupt the service dog while it is performing its tasks.

1. Speak to the person first.
Do not try to attract the service dog.
2.
Do not touch the service dog without asking for, and receiving, permission.

3. Do not offer food to the service dog.

Security Deposits

The most successful landlords have a closed-loop process for everything, including security deposit returns .This one is a snap:

1. After the final walkthrough have the tenant provide his new address on an envelope (of course you’ll provide one);
2. You, the landlord, includes a detailed accounting of all deductions (make sure that you itemize everything – different states have different requirements regarding security deposits and interest bearing accounts);
3. Write a check, include it in the envelope addressed by the tenant at the walkthrough and post – make sure to get a certificate of mailing (no special delivery, just something that provides legal proof that the refund was posted on a specific date within the timeline required for security deposit refunds). I usually make a photocopy of the check and keep it with the tenants’ file.

That’s it!

Credit Reports

Doing it right. Another component of the screening process is the credit check. A landlord must treat all applicants equally and hold all applicants to the same standard. Credit bureaus such as Equifax, Trans Union, or Experian provide credit reports, however you can also access consumer reports via the Fair Credit Reporting Act (FCRA) to evaluate rental applications. As with everything, there are rules and the “The FCRA requires landlords who deny a lease based on information in the applicant’s consumer report to provide the applicant with an “adverse action notice.” The abridged version can be found on the Federal Trade Commission website located at http://www.ftc.gov/bcp/conline/pubs/buspubs/landlord.shtm
In sum, if you deny an applicant based upon the consumer report you are obligated to provide a copy of the report to the applicant.

Insurance Policies

…a little rain must fall… Landlords usually focus on ways to cover their losses in the event of catastrophe; however liability insurance should be part of the whole package. A well-designed insurance plan can protect your rental properties from losses caused by everything from fire and storms to burglary, vandalism, personal injury and discrimination lawsuits.

Types of policies. You need to determine what you want your policy to do for you in the event of a claim. A peril policy will provide minimal coverage to protect from specific major causes of loss such as fire, wind or explosion, whereas a comprehensive policy covers all types of accidental losses, except those that are specifically excluded in your policy. Your payout will be determined based upon the loss settlement that you have within your specific policy.

In addition to base coverage, it’s a good idea to include some optional coverage such as: liability, loss of rents, other structures, theft, personal property, vandalism or  valicious mischief (sometimes included in the policy) and earthquake.

Types of settlements. An Actual Cash Value settlement pays for the current value of your property, which is the cost of replacement minus depreciation, based on age and wear, up to the limit in the policy and will have a lower premium. A Replacement Cost settlement pays the amount needed to replace your property (without deduction for depreciation) with new property of like kind and quality, subject to any applicable deductibles and coverage limits. (You must actually replace the property to be awarded a replacement cost settlement. If you do not, or until you do, your claim payment would be based on an actual cash value basis.)

It’s a good idea to review your insurance policies yearly to make sure that your coverage is in line with the value of your property. Shop around and compare quotes. Check with other landlords and business owners for recommendations and make sure that you understand the type of policy, coverage, and settlement that you’ve selected. There’s an enormous difference between the two types of settlements and in the event of a claim, it can add up to a substantial amount of money – these are hard decisions to make and need to be made with care.

Believe me; it’s easier to understand the nuances of an insurance policy before you actually have to file a claim than argue the ‘fine print’ with the adjuster while standing in the smoldering remains of what’s left of your rental property.

Security Deposit

Remember what your mother told you?  The same goes for rental property.  Leave it in the same condition that you found it.  Typically the cost for cleaning an apartment is between $120 – $150, which is a good investment if it will get your security deposit back at the end of a lease.  “Normal wear and tear” is a vague term for ‘reasonable’ wear that can be claimed through the course of tenancy.

Normal wear and tear would be: faded window treatments and peeling paint, worn carpeting, worn hinges and locks, toilet seats, linoleum, door jams or screen doors.

 Damages would be: holes in walls, broken windows, broken drawers, missing components from refrigerator or cabinets, excessive mildew or mold, torn or stained or burned flooring or counter, filthy appliances, broken doors, or windowsills, urine odor, or insect infestations.

Always screen your applicants

Some Section 8 landlords think it’s unnecessary to run a credit check on their Section 8 applicants. WRONG! We always run a credit report on our HCV applicants. Their scores may be low, but the information will reveal whether the financial issues are a recent development, or if they are lying about previous addresses/rental history on their application. It’s also a good idea to check alternative credit references, such as utility, water, power, phone, cell, or auto insurance companies – these companies typically don’t report to credit bureaus – and alternative credit references are especially useful if a family has zero or incredibly bad conventional credit. For instance, if the applicant has had problems within the last twelve months in paying for fundamental services such as lights and water you have a clear indication their financial challenges are on-going.Remember: Screen everyone equally and never differentiate an HCV applicant from an open-market applicant.Also, don’t forget to run a criminal history check. An HCV applicant is checked for felonies when they are initially issued a voucher, however if they’ve had the voucher for many years and were convicted of a felony, the PHA may be unaware of the recent conviction. Also, I would want to know if the applicant was a repeat attendee in court, regardless of the number of convictions.

US Citizen, US National, or….?

US Citizen, US National, or….?

Perhaps some of you have read about the elections being held in Farmers Branch, TX. Residents will vote on Ordinance 2903 – a law that would ban apartment complexes from renting to most illegal immigrant, by requiring the apartment manager to obtain proof of citizenship or legal immigration status from tenants.

Most Americans, at least those that have been here more than two generations, don’t understand the nuances related to citizenship in their own country. Who could blame us…that’s why immigration attorneys make buckets of money explaining the process to hopeful future-citizens. The following is a brief explanation:

A person who has a work visa is allowed to come to the United States to work. They are not a legal permanent resident.

A person who has a green card, is in the process of trying to become a U.S. Citizen, and is a legal permanent resident. A person must be a legal permanent resident (LPR) for 5 years before applying for citizenship – unless married to a citizen then they must wait 3 years, or if they have a special alien status (asylum, refugee etc) the time frame is different. A person can stay a LPR, not apply for citizenship, and be here legally.

A person who has a work visa is entitled to work in the U.S. and is subject to all U.S. laws, but when their visa expires – if they have not applied for their green card – they are considered an illegal alien and can be deported unless they renew their work visa, just like a travel or student visa. If the work, travel or student visa has expired – they can be sent back to their home country.These individuals holding visas and green cards may not be US citizens, but they are fully protected under the US constitution.